Founder Interview
How ClickUp Reached 800,000 Teams and $80M Revenue (Interview with Founder and CEO Zeb Evans)
- Interview Date
- June 1, 2022
- Interviewee
- Zeb Evans, Founder, Chief Executive OfficerFounder, Chief Executive Officer
Company Metrics at Interview Time
Total Teams on Platform
800,000
Paying Teams
85,000
Revenue
$80M
Valuation
$4B
Employees
800
Historical Snapshot
These numbers were reported by Zeb Evans during his interview with Nathan Latka recorded in June 2022 and are a historical snapshot, not current figures. See ClickUp’s current numbers.
Key Takeaways
- 01ClickUp had 800,000 teams on the platform at interview time, up from 200,000 at Series B
- 0285,000 of those teams were paying customers
- 03Revenue was around $80M with a stated path to over $200M the following year
- 04ClickUp raised roughly half a billion dollars in total funding
- 05Series A was raised at a $200M valuation, Series B at $1B, and the most recent round at $4B
- 06The company had just shy of 800 employees, including about 100 engineers
- 07Zeb Evans bootstrapped ClickUp to a $20M to $25M run rate before raising any VC
- 08The original $2.5M in convertible notes came from Evans's own money, capped at a $5M valuation
- 09ClickUp grew roughly 4x in teams since its Series B
- 10Evans runs a six-person internal squad called the Zeb team that ships experimental features from idea to test within a week
Company Metrics at Time of Interview
| Metric | Value | Source |
|---|---|---|
| Total Teams on Platform | 800,000 | Founder interview, June 2022 |
| Paying Teams | 85,000 | Founder interview, June 2022 |
| Revenue (estimated at interview) | $80M | Founder interview, June 2022 |
| Projected Revenue Next Year | Over $200M | Founder interview, June 2022 |
| Total Funding Raised | $500M | Founder interview, June 2022 |
| Series A Raise Amount | $35M | Founder interview, June 2022 |
| Series A Valuation | $200M | Founder interview, June 2022 |
| Series B Valuation | $1B | Founder interview, June 2022 |
| Most Recent Valuation | $4B | Founder interview, June 2022 |
| Initial Convertible Note Cap | $5M | Founder interview, June 2022 |
| Initial Convertible Notes Raised | $2.5M | Founder interview, June 2022 |
| Bootstrapped Run Rate Before Series A | $20M to $25M | Founder interview, June 2022 |
| Employees | 800 | Founder interview, June 2022 |
| Engineers | 100 | Founder interview, June 2022 |
| Teams at Series A | 100,000 | Founder interview, June 2022 |
| Teams at Series B | 200,000 | Founder interview, June 2022 |
| Docs Product Team Size | 12 | Founder interview, June 2022 |
| Zeb Team Size | 6 | Founder interview, June 2022 |
| Standard Squad Size | 5 to 7 | Founder interview, June 2022 |
| Hours of Sleep Per Night | 4.5 | Founder interview, June 2022 |
| Age at Interview | 32 | Founder interview, June 2022 |
Growth Breakdown
Revenue
Zeb Evans indicated revenue was around $80M at interview time and confirmed the company would be well beyond $100M and likely above $200M the following year. He declined to share specific revenue figures but acknowledged the host's $80M estimate as close.
Customers
ClickUp had 800,000 total teams on the platform at interview time, up from 200,000 at Series B and approximately 100,000 at Series A, representing roughly 4x growth since Series B. Of those, 85,000 teams were paying customers.
Team
The company had just under 800 employees at interview time, up from approximately 140 at the time of the Series A roughly 18 months prior. The engineering organization numbered about 100 engineers organized into hyper-focused squads of 5 to 7 people.
Funding
ClickUp raised approximately $500M in total funding across its rounds. The Series A of $35M was raised at a $200M valuation, the Series B was raised at a $1B valuation, and the most recent round was at a $4B valuation. Evans bootstrapped the company to a $20M to $25M run rate before taking any outside capital.
Growth Strategy
Bootstrapping to Product-Market Fit
Evans bootstrapped ClickUp using roughly $2.5M of his own money from a prior company, capped at a $5M convertible note, and scaled to a $20M to $25M annual run rate before raising a Series A. He advocates bootstrapping until product-market fit is established and unit economics are understood.
Paid Acquisition and Competitive Marketing
Evans cited paid acquisition as a major growth lever in a competitive category, stating that ClickUp must out-market and outmaneuver competitors. Comparative landing pages positioning ClickUp against tools like Jira, Trello, and Monday are a key part of this strategy.
Product-Led Growth and Free-to-Paid Conversion
ClickUp operates a freemium model and has built dedicated product growth squads focused on activation, retention, and upsell to improve free-to-paid conversion. The 85,000 paying teams out of 800,000 total represents an ongoing conversion opportunity the team is actively working on.
Hyper-Focused Engineering Squads
Engineering is organized into squads of 5 to 7 people, each with a product manager, engineering manager, engineers, and a shared designer, focused on very specific product areas. This structure allows ClickUp to ship integrations and features quickly without disrupting core product teams.
Acquihire and Product-Focused M and A
Evans described an M and A strategy focused purely on product and team rather than revenue, targeting companies that have already built something ClickUp would otherwise spend six months to a year building. The goal is to buy time and bring in teams that fit the culture.
Best Quotes
“We bootstrapped into our series a about, yeah, eighteen months ago.”
“We have just just shy over 800 employees today. And on the engineering side, about about a 100 engineers.”
“We now actually have 800,000 teams that that use our product. We had 200,000 when we raised our our series b, and I believe around a 100,000 in in series a.”
“Yep. 85,000 paying teams.”
“We will be far beyond a 100,000,000 next year.”
“Our our series a was 200,000,000.”
“I I put in a cap at 5,000,000. Yeah. So so, essentially, I was investing at a 5,000,000 valuation. And then when we invested at 200,000,000, your nerds your notes convert at that same I mean, I I took I've got, like, another 30 or 40% of the company.”
“Our m and a strategy is purely product focus, product and team. So acquihire and and product.”
“I would say this is, like, everybody's just figuring it out. Everybody's just fucking figuring it out as you go, whereas I used to think that all of especially the big tech founders knew exactly what they were doing.”
“Literally, in in a matter of, like, forty five days, you know, we we were net positive. We were we were cash flow positive.”
What Happened Next
This interview captured ClickUp at a specific moment in June 2022, when the company had 800,000 teams, 85,000 paying customers, revenue around $80M, and a $4B valuation after raising roughly $500M. Zeb Evans signaled that revenue would exceed $200M the following year and that M and A announcements were imminent. For current revenue, valuation, team size, and customer figures, visit the live ClickUp company profile on getLatka.
View ClickUp’s current profile and metricsFull Transcript
Chapters
- 0:00Introduction and ClickUp Overview
- 0:21Near-Death Experiences and Productivity Obsession
- 1:13Bootstrapping to Series A and Early Capital Efficiency
- 3:28Capital Allocation After Raising Half a Billion
- 5:34Team Size and Engineering Organization
- 6:34Integration Strategy and Competitive Marketing
- 8:28Revenue Growth and Team Metrics Since Series A
- 10:18Hyper-Focused Squad Structure and Docs Product
- 14:16The Zeb Team and Experimental Feature Bets
- 17:33CTO Alex and the Origin of ClickUp
- 20:21Building the Craigslist Competitor That Became ClickUp
- 23:41Fast Followers Social Media Company and Prior Revenue
- 29:01Valuation History and Convertible Note Strategy
- 32:11M and A Strategy and Revenue Projections
- 35:25Famous Five Rapid Fire Questions
Introduction and ClickUp Overview
Nathan Latka
00:00Hey, folks. My guest today is Zeb Evans. He's the founder and CEO of ClickUp, the all in one productivity platform that empowers more than 300,000 teams and 3,000,000 people around the world to save time and live more productive lives. He's a serial entrepreneur. He started several software companies with over 100,000,000 in revenue with a focus on building tools that increase productivity and save people time. Zeb, you're ready to take us to the top?
Zeb Evans, Founder, Chief Executive Officer
00:20>> Let's do it, Nathan.
Near-Death Experiences and Productivity Obsession
Nathan Latka
00:21How much of this productivity focus I know you casually mentioned it in your in your last round financing. You've had four near death experiences. How does that actually, like, make you move faster, and how do you pass that urgency off to your team who maybe hasn't had four near death life experiences?
Zeb Evans, Founder, Chief Executive Officer
00:38>> Yeah. I mean, look, at the end of the day, those those experiences made me obsess over time and efficiency. Right? And productivity is is equivalent to time. And so and and and on a personal level, it's time. On a business level, time ends up being money. So businesses should care about productivity more than ever. Individuals should care about it more than ever for for where their time goes. And so, you know, for for us, it's it's
01:00>> easy to cascade down to everyone in our company when everyone sees the the impact of the products that that we're creating. We can kind of create that that obsession and that culture around saving people time and and making people more productive.
Bootstrapping to Series A and Early Capital Efficiency
Nathan Latka
01:13Mhmm. Now you eighteen months ago had bootstrapped, I believe. You launched the business in 2017. You'd bootstrapped. I think you shared up to, a 20 or $25,000,000 run rate. Right?
Zeb Evans, Founder, Chief Executive Officer
01:23>> Yep. We we bootstrapped into our series a about, yeah, eighteen months ago.
Nathan Latka
01:26Yeah. But, I mean, again, nice nice scale of revenue, very capital efficient because you'd only raised, I think, 2,500,000 convertible notes up to that point. Right?
Zeb Evans, Founder, Chief Executive Officer
01:35>> Correct. Yeah. Those those convertible notes were actually in mine that I used from a previous company to to fund. So yeah.
Nathan Latka
01:40That's hysterical. Was that Mango?
Zeb Evans, Founder, Chief Executive Officer
01:43>> It's called Fast Followers. He did social media marketing and automation.
Nathan Latka
01:47Oh, really interesting. Okay. But guys, I'm bearing the lead here a little bit. Right? Because so eighteen months ago, only 2 and half million raised. It sounds like of his own money, which is great, but bootstrapped in. He hadn't raised any VC and then said, you know what? I fell in love with David Sachs at Kraft. He talked about that on our last episode together. So we're not gonna rehash that. But my gosh, is that if
Zeb Evans, Founder, Chief Executive Officer
02:03something got in your blood because you raised about half 1,000,000,000 since then, what's driving sort of it's like, where have you this is, in my opinion, this kind of capital. You are now a capital allocator. Right? And it's like, how do you allocate capital to hit this productivity goal for the world? So, like, where are you allocating capital today?
Nathan Latka
02:20>> Yeah. I got and I'll start by saying, I think I'm I'm still I'm still a very much an advocate for Bootstrap as long as you can until you get product market fit through through getting product market fit. After your product market fit, raise capital in efficient means when you know unit economics, and you can spend capital in in sustainable ways. I I think so it's still as as you know, as ridiculous amount of money that we
02:40>> have raised, a half $1,000,000,000, it's still we're we still very much focus on doing it in a in a sustainable way where we have a net positive impact after spending every single dollar. And so to answer your question, no, we of course, marketing and paid acquisition is is a big piece of of growth in a particularly in in a very competitive category. We have to out market and outmaneuver our competitors, but product and and innovation and
03:05>> r and d always has to be top of mind as as well. At the end of the day, the the only defensibility that we have is moving faster than our competitors and building better a better product and a better user experience than than they can as well. So, you know, acquisitions will will certainly be on on our radar in, you know, in the very near future, as is scaling globally. We were opening offices around the world
Zeb Evans, Founder, Chief Executive Officer
03:29>> and, being able to localize our product in in several different languages as well.
03:34Give me a quick team update. Last time you came on, you shared that you were just breaking about a 140 employees. I think you're over 600 now. Is that accurate? And if so, how many engineers?
03:44>> Yeah. We have we have just just shy over 800 employees today. And on the engineering side, about about a 100 engineers.
03:54And so you've done a really interesting thing in terms of I think you had, at least, terms of quantifying your engineering power based off number of integrations you've launched. And all of your comparable pages where it's ClickUp versus Jira versus Trello versus Monday, you talk about, again, more integrations. Why is that marketing line working so well, and how have you instrumented your engineering team to pump these integrations out so quickly and keep them updated?
04:16>> Yeah. We we we say we'll not have to replace them all. That's that's the familiar messaging that we place. But the reality is, you know, we're we're not trying to replace every single application. We do think that we can put all of your workplace productivity software in one place, and and that is is ultimately our true mission. And outside of that, we play very nicely with every other integration on on the market. And so we, you
04:35>> know, built our our platform in a scalable way where we can build integrations very quickly, and we can also build features very quickly that that actually use separate teams that don't even affect our our core product teams, but are still within that same platform, the same the same ecosystem. So we've been very mindful of doing that since day one because, essentially, we're with with our vision, we're putting 15 different products inside of one, And so it's
04:59>> it's you know, traditionally, that's not the thing you do in software. Right? You're supposed to do one thing and and do it well, and we've kind of always been the antithesis of of that.
05:08Talk to me about growth. So since 2020, when you guys decide to go in and do that series a, 35,000,000 series a, how much have you grown revenue since then?
05:17>> Yeah. We can't we can't really talk specific specific revenue numbers right now, but, you know, we've we've grown we now actually have 800,000 teams that that use our product. We had 200,000 when we raised our our series b, and I believe around a 100,000 in in series a. So, you know, you you can kinda kinda back the math out there, and and we've grown roughly four x since our our series b.
Nathan Latka
05:40Mhmm. Now I think you said in the in the press release for the round, you have 85,000 teams who are actually paying. Did I read that correctly?
Zeb Evans, Founder, Chief Executive Officer
05:46>> Yep. 85,000 paying teams.
05:48And so that's against 800,000 that are using you altogether. Are you happy with that conversion rate, or is there room to improve there?
Nathan Latka
05:54>> There's always room to improve everything for sure. And and we just started building, you know, product growth teams that are more focused on activation, retention, and, of course, upsell monetization, increasing our free our free to paid conversions. So there's always room to grow in in in everything.
06:10How are you structuring those teams? Can you tell me about the last, like, little SWAT team you put together and what they're attacking specifically? How are you motivating that team?
06:18>> We we have always had a a very functional focus to product and engineering in the first place because it's such a wide product. Like, you can't have everybody do everything. Every engineer do everything. So we've always had these these teams focused around our our core product. Now what we've done is is really hyper focused them on very individual features so that you have a squad of of five to to six or seven people. You've got a
06:41>> PM, you got an EM, you got a few engineers, and usually a designer that that's tied to each of those. Project manager, engineering manager? Product manager and engineering manager. Yep.
06:51And then I cut you off. Sorry. I just wanna I wanna note this down. So those two are part of the five to seven squad. Who what are the other four?
Zeb Evans, Founder, Chief Executive Officer
06:58>> Then you have engineers. So depending on the feature, maybe it's more back end heavy. So you'll have four just back end engineers. If it's front end, you'll have a a mixture between those. And then you'll have a designer that's kind of tied tied to that team, which we don't actually count as as part of that team. So that'd be a a plus one in addition to that because designers have multiple teams. And and so that's that's
07:17>> what has allowed us to scale EPD, like, engineering product and design, is building these hyper focused teams that are focused on very, very specialized pieces of of our product. And and product growth is is one of those teams.
07:31Can you go deep on one of those? I mean, can we talk about the new docs product a little bit more and and the team specifically around that and how it's split up?
07:38>> Yeah. So our our docs product is actually is one of our our larger ones. I think it's it's 12 people. So it's it's it's it's kind of an abnormal abnormality there, but it it is a big piece of our product. And so that is is we we have a real time collaboration. There's two people working on real time collaboration. So that's now if you picture any doc where you can see somebody's cursor and typing, that stuff
07:57>> is is very complicated to to make great. And so we have two people that are are fully focused on on that. And then within that that the rest of that team got five or so front end engineers and and four four three or four back end engineers. Then you, of course, got our our PM, our product manager, and you got an engineering manager there as well. And so Docs was Docs was one that we've been working
08:21>> on for a long time in the background. It was probably a month ongoing project that we've been working on, and we because we really felt that, you know, we needed to to to be the kind of the category leader there in in our space and get the feature parity with those point solutions in order for people to replace those point solutions with with ClickUp.
08:38Mhmm. How do you think about putting together these mini squad teams for digging for new ideas? Like, the PM is talking to a 100 customers a month. They're testing some of the engineering. And then can you tell me a story about one that you shut down where you spun that team up, they tested it for x amount of time, and it just it you you said no because the metrics didn't work or whatever.
08:56>> Yeah. We so we have a Zeb team also. And the the the the ZEB the ZEB team is is for the things that you're talking about, really. It's for the bets. Right? The big bets that we're taking. And it it's really our our early kind of principal engineers that are on that are on my team, and we take big bets. I have I have an idea on Monday, and we'll try to get it shipped by Friday.
09:17>> Lots of times, we will test it. We'll only put it in certain workspaces. You gotta enable it. We'll see we'll see the feedback from that, and, you know, sometimes we'll shut we'll shut it down and and sometimes we'll we'll we'll continue shipping. But it's it's the the fun it's the the fun that
09:31you're come on. Tell me about your lack because people read you in the press. They go, this guy can't do anything wrong. His shirts look great. He's got a great smile. He's raising all this money. What's the last thing? You had an idea on Monday, and it just flopped on Friday. I mean, it was just bad.
09:43>> You know, there's I there's been been several things that we we shipped half assed. Right? We shipped 10% of it, and we just never finished it. A feature called lineup is honestly it's one it's one of those where the whole vision for it was to be able to prioritize your work and know exactly what people should work on next. So picture a list of five tasks that each person has in your company that this is their
10:05>> priority. It just it just never took off. It never really went in anywhere. And so it actually still exists in our product, and I and I I know we'll be able to get back to it at some point and use automation to make it better. But that was that was certainly a a flop.
10:20Round that team out for me. How many people are on the Zeb team?
10:23>> Six people.
10:24Six. Okay. And is it PM, EM, four engineers?
10:28>> So I'm the PM in the EM. So it's it's it's five engineers plus myself.
Nathan Latka
10:32I love that. Okay. Very cool. So you still get to participate in that on the ground test that stuff day one sort of stuff. Yep. That's nice. You've held on to that. Alright. Yeah. Tell me more for people that maybe don't know. I mean, you're the guy that's in the videos. You're doing all this stuff, but you do have a CTO that you worked with also at a prior company, Mango, which sounds more like a venture
Zeb Evans, Founder, Chief Executive Officer
10:49studio where ClickUp is the thing that took off. Tell me about your relationship with him.
Nathan Latka
10:53>> Yeah. So Alex was at IBM when I when I found him, and I I knew I needed a a very technical CTO and cofounder to to build this thing with. So I had always been pretty technical myself. You know, I know how to code, but I was using old technology. I I knew PHP, and I don't really know their JavaScript, at least in the back end the back end side of it. And so when, you know,
Zeb Evans, Founder, Chief Executive Officer
11:17>> when we were starting and by the way, Mango is just the the name for for the parent company for ClickUp. Mango is a DBA DBA for ClickUp.
11:24So you always you that wasn't a venture studio. You weren't testing a bunch of ideas. It was ClickUp from day one.
11:29>> No. You're right. We we were we were testing. We actually were gonna do a Craigslist competitor where you could pay in app and remove sketchiness from Craigslist. And we built ClickUp as an internal tool in order to build Craigslist. And we just kind of I had always been obsessed with efficiency and time again from those near death experiences, and so I was always that person that was trying to squeeze out an extra hour a day and
11:50>> trying to get an extra 10% more productivity for everyone on the team. And that's why we built ClickUp was so that we could do that. And it wasn't one of those, like, Slack stories where, you know, we were using it for years and then kinda decided that this was the product. It was, like, a matter of a month. It was, like, a a month where we started building this, and we just realized we were more passionate
12:08>> about this than the Craigslist idea, and that there was a lot of opportunity here even in a very competitive category.
Nathan Latka
12:14Now, Zeb, you had no idea Alex had no idea where CookUp would be today back then. Right? So maybe you do things differently. But back then, did you guys just split the you know what? Let's just split equity right down the middle fifty fifty day one, or did you do something different?
Zeb Evans, Founder, Chief Executive Officer
12:26>> We we did something different. I I kinda I I was the one that was funding everything still, so it was it was all it was all my bets as far as the resources go. And and, yeah, I wasn't wasn't being paid a salary or anything like that. So it was it was it was definitely different than than I think your your normal life.
12:42You can quantify that for what it is. You're betting on yourself. You you had some success. You said, you know what? I'm gonna fund this thing. Take less equity, but I'm pay them a lot. I'm gonna take nothing. I get it. Where did you make money before ClickUp?
12:53>> Yeah. So I I and I've been an entrepreneur since I was, like, five years old. So I was always always doing something. Every year of my life, I have I have some type of story of of a hustle. But I actually was I I was I had a a mobile DJ company, an entertainment company, and and a friend and I of mine were were we were managing some rappers. Actually, we were at we were averaging the
13:13>> tech, and we were managing a couple of rappers. And and we
13:16were This was after your monorail days at Disney, I assume.
13:19>> This was this was after my monorail days. And we there was a problem that we noticed where, like and and big big events when and this is don't maybe it's not a problem anymore, but when there's 10,000 people in one space, you didn't have cell phone service back then. And you couldn't send out tweets first, and we were managing these these rappers'social media. You couldn't send out tweets. And so that's where my brain got spinning
13:40>> where I I wanted to just like being able to automate sending out tweets. And then I wanted to be able to look at who's following you. Back then, they didn't have APIs to do that. Twitter didn't have their own reporting platform to do that. And so I kinda just built things that scraped your follower list and was able to show, like, who's following you. You can automate engagement with people. And so we kind of it it
14:01>> was it was a SaaS model before I knew what SaaS was. We started getting people paying a monthly subscription. And and then it turned into more of the what we found the real money was in was managing more high profile celebrities'social accounts in order to gain gain followers, gain engagement, and increase the quality of their content based on who was following them.
Nathan Latka
14:20How much revenue do do in the best year there?
14:24>> Several million dollars.
14:25And you sold it?
14:27>> I did not sell it. I actually so I I I had my third near death experience, and I realized during that period that that business was not adding net positive value for the world. I I actually felt bad about it. I was like, we were inflating people's egos on social media, you know, and we spent four years of my life doing that. And so I felt like I had wasted so much time, And so we shut
14:49>> it down. That next we paid everybody six months at our at the company, but but we shut the company down. And and that was when I moved out to Palo Alto, drove across the country from from Virginia, and thought that you know, I I got to Palo Alto for this. Like, I was picturing Vegas with start up lights. You know, just like start ups everywhere. And you get anybody that's been to Palo Alto is, like, the
Zeb Evans, Founder, Chief Executive Officer
15:11>> sleepiest town in the world. In fact, they have an ordinance against putting signs up.
15:14It's like the sweet the sweet green on the corner is the most exciting thing you're gonna see.
15:18>> The sweet green and the ice cream shops.
15:20Yes. That's exactly right. That's incredible. Okay. So you shut it down in 2016, but what you're saying is you were running that profitably. You took dividends enough where you could fund the two convertible notes early on into Mango and ClickUp.
15:30>> Exactly. Exactly. So so that was it was I mean, we we got to a point where, you know, there was we had, like, $25 left in the bank account, so that was, like, enough for another month's another month's runway, really. And I had a little bit of money left, but
15:45not month. Zeb? What year?
15:47>> '20 had to be it's, like, 2017.
15:50End of 25 k left in the bank.
15:52>> Yeah.
15:53Wow. And So you burned through, like, burned through, like, a million at that point then.
15:59>> I think I think more than that. It's probably probably $22,000,000. And and, you know, it might have been it might have been 2038. Yep. But the the point is that, you know, we we had about a month of of runway left, and and we were getting to, you know, we were getting to a point where we don't we weren't we didn't know if this was gonna be successful or not, and we could not raise raise funding
16:21>> at the at the time. And so, you know, I was I was, like, thinking to myself, like, should we you know, should I invest a little bit more money? I really only had, like, a $102,100 grand left that I could put into it. And so I pulled my head out of product and started focusing on go to market, and we added paywalls, and we introduced promotions for for one of the holidays that was during that month.
16:42>> And literally, in in a matter of, like, forty five days, you know, we we were net positive. We were we were cash flow positive. And so the bank account got really low. I think got down to a couple grand, but we we we turned it around, and we became we became net positive.
16:572018, was that your first million dollar revenue or your million dollar run rate?
Nathan Latka
17:01>> I believe so. I'm I'm not I'm not the I'm not the numbers person, Nathan. I'm the I'm the product I'm the product marketing.
Zeb Evans, Founder, Chief Executive Officer
17:09Alex is engineering. He's definitely not the number person. You had to be the number person back then.
Nathan Latka
17:13>> I still was more like, look. When when I realized we had $25 in the bank account, I realized we had 20 that was the first time I realized it. I should've I should've been thinking about that six months ahead. Like, how much are we burning? And that was after we cut down a shit ton of our expenses where where, like, maybe before we're spending much more. I think we're spending, like, a $100 a month, and we
17:32>> started cutting things down within, like, thirty days because I was like, shit. We're running out of money. Jeez. So so so yeah, I I honestly haven't haven't really been that that numbers person.
Zeb Evans, Founder, Chief Executive Officer
17:41Crazy. Well, hey. Before we wrap up here, I would love to get some numbers out of you if you're if you're comfortable sharing them. I'm only asking this one because you've already shared valuation in the press releases, 4,000,000,000 recently, a billion in 2020, but I don't know what you raised at 35,000,000 at. What valuation did you raise at the 35?
17:56>> Our our our series a was 200,000,000.
17:59Cool. There you guys have it. A little bit little bit interesting news there if that's that's manageable. I like how you're managing. I mean, you're basically selling 10% every time you're doing a round. So you're really nicely managing dilution here. You're not gonna be one of these CEOs where if you go public, you only own 5%. Right?
18:12>> Exactly. And a little trick if you convertible notes is a really great way with the cap to invest in your own company if you ever wanna invest in your
18:21own company. Don't is that I full disclosure. I don't understand that. I don't why did I give you leverage? Why don't you just put in money directly? Why do you need to put on a note?
18:28>> Well so I I put in a cap at 5,000,000. Yeah. So so, essentially, I was investing at a 5,000,000 valuation. And then when we invested at 200,000,000, your nerds your notes convert at that same I mean, I I took I've got, like, another 30 or 40% of the company.
18:43Oh, so it's basically a way where if that series a investor says, please put up a 15%, like, ESOP pool, you can sort of get some of that back with a note conversion because they're happening at the same time.
Nathan Latka
18:56>> Well, you you normally you know, if you get and this was several years ago, 5,000,000 was wasn't out of the ballpark. I mean, now 5,000,000 is very low for for convertible note cap. But if you have 5,000,000 convertible note cap, you would expect normally to raise a series a much sooner. Right? Much sooner at like a a $4,050,000,000 valuation, and then it becomes realistic. When you raise that 200, those those those convertible note investors get a
Zeb Evans, Founder, Chief Executive Officer
19:18>> a bit much bigger portion of of the company than they would have previous previously.
19:22Hey, I last question before we wrap up. We're two minutes over. Coming off of you have a hard stop here. But cash and bank and m and a, how are you thinking about m and a?
19:31>> There are our m and a strategy is, you know, I I I don't wanna say too much about it. We'll have we'll have some announcements to make soon. But we only we only really focus on things that can be part of our core product, core ecosystem. We are a unified productivity platform. Right?
19:46That's always No one's gonna build better than Uzab. I mean, when I look at this product, I don't understand how you look at anyone and say, you know what? We we're just gonna build a better, sexier version. Why would you ever buy someone and deal with the operational risk there?
19:58>> Well, so we're not looking at competitors competitors to buy where where we would we'd have to roll up teams and roll up products. But what we what we are looking at is somebody that these companies that built something that we were going to build that would take us six months, a year to build, we're buying time. And so if we can buy time and find people that are within our culture with our values, but that also
Nathan Latka
20:18>> now to move really quickly and have built something awesome, then then that's something that that we are we are open to. And and like I said, we'll we'll have we'll have some announcements to make very soon.
Zeb Evans, Founder, Chief Executive Officer
20:27You think you're gonna buy your way past a $100,000,000 in AR next year with the acquisition announcement coming up?
20:32>> We we will be we will be far beyond a 100,000,000 next year.
20:35You think will be more than 200?
20:38>> Yeah.
20:38No. You seriously, it'll be more than 200, Zeb?
20:41>> Yeah. Oh, yeah.
20:42That's incredible. Like, you're not you're not north of a 100 today. I have you right now pegged at, like, 80.
20:47>> That's close.
20:48He's like, he can't he can't comment.
20:50>> I don't wanna make I don't wanna push
20:51you too hard here. That's impressive. You remind me so much of Johnny at Hopin. Like, he came on a year and a half ago she with no revenue, and he's basically bought time and bought his way. It's a crazy strategy. Is there enough deal flow out there for you where you feel like you can go buy a company doing $30.40, 50,000,000 in ARR for a relatively okay price? No.
21:08>> No. Our m and a strategy is is is we don't we don't focus on the revenue part of it. Our our m and a strategy is purely product focus, product and team. So acquihire and and product.
21:20Interesting. Very cool. Let's wrap up quickly with Famous Five. Number one, favorite book.
21:25>> What the slight edge is what we make everybody read at our company. It's about 1% growth every day, but I also I love everything storage. Jeff Bezos.
Nathan Latka
21:33Number two, is there a CEO you're following or studying?
21:37>> I'm always a Steve Jobs person.
21:40Number three, what's your favorite online tool for building ClickUp? You can't is gonna be hard. You can't say ClickUp, but you do so much. You have to pick something else.
21:48>> Figma.
21:49That was hard for you. Okay. So is it are you gonna be building tools? I mean, look at Canva. Are you gonna be building tools for designers here? You gonna focus mainly on, you know, productivity teams?
21:58>> We we focus on on on just productivity as as a whole. You know, there will be things like virtual whiteboarding in the in the very near near future. But at the end of the day, you know, we're we're we're not trying to to compute the point solutions for designers. No.
Zeb Evans, Founder, Chief Executive Officer
22:13Number four. How many hours of sleep do get every night?
22:16>> 4.5.
22:17That's not a ton, is it?
22:20>> No. It's not. I've I I actually have I I was diagnosed with narcolepsy a long time ago, and I went to a Tony Robbins conference. And he only slept four hours a night, I was like, I've gotta try this. I used to be that guy that slept, like, twelve hours. And I I was always wasting time, and I started sleeping less, and I was more energy I I changed a lot of things. Don't even worry. I
22:38>> changed my diet, changed my health, but I also start was able to to to sleep less. So yeah. So I sleep four point five to five hours now, and I'm Fast.
22:46Feel great. I love that. Alright. Five. And then I think what? You had a birthday. Right? You're 31 now?
22:53>> I'm 32, but you can you can say I'm 29.
22:5632. There you go. Alright. 32 years old. And Jeb's or is that situation married single?
23:01>> Single.
23:01And no kids running around?
23:03>> No kids. I know.
23:04Just just click up on the in the 12 product babies under. Last question. Something you wish you knew when you were 20.
23:13>> I would say this is, like, everybody's just figuring it out. Everybody's just fucking figuring it out as you go, whereas I used to think that all of especially the big tech founders knew exactly what they were doing. And the reality is entrepreneurship is just figuring it out. Even when you get to our level and and beyond, the the the, you know, the huge CEOs that I that I talked to, I just, yeah, I just I just
23:32>> spent a a week with Richard Branson. And he himself is just figuring everything out as he goes. Right? Just just really taking big bets and and hoping that they work out. And then when they don't work out, maneuvering really quickly and changing. And so I wish I knew that that's what entrepreneurship was, but that's certainly one of the biggest lessons that I've learned.
23:49Guys, ClickUp, 800,000 teams on the platform. 85,000 are now paying caught north or around of $80,000,000 in revenue. On path to break caught a 150, 200,000,000 next year. Crazy growth going back to their series a, 200,000,000 valuation, series b in 2020, a billion and now 4,000,000,000, but Zeb is just getting started. Some interesting news coming up. It sounds like on the M and A side, they're continuing to build great products for productivity teams. One app to
24:12replace them all or to empower them all or to power them all, whatever is politically correct. But Zeb, we're rooting for you, man. Thanks for coming on the top.
24:18>> Thanks so much, Nathan.
24:21One more thing before you go. We have a brand new show every Thursday at 1PM central. It's called Shark Tank for SaaS. We call it deal or bust. One founder comes on, three hungry buyers. They try and do a deal live and the founder shares back end dashboards, their expenses, their revenue, ARPU CAC, LTV, you name it, they share it. And the buyers try and make a deal live. It is fun to watch every Thursday 1PM
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Nathan Latka
25:30up for that at nathanlakka.com/slack. In the meantime, I'm hanging out with you here on YouTube. I'll be in the comments for the next thirty minutes. Feel free to let me know what you thought about this episode and if you enjoyed it, click the thumbs up. We get a lot of haters that are mad at how aggressive I am on these shows, but I do it so that we can all learn. We have to counter those people.
Zeb Evans, Founder, Chief Executive Officer
25:50We got to push them away. Click the thumbs up below to counter them and know that I appreciate your guys'support. Alright, I'll be in the comments. See you.